Shanghai (ZXZC)- BYD Company Limited (BYD) announced on May 11 it plans to spin off its controlled subsidiary BYD Semiconductor Co.,Ltd. for the independent listing on the ChiNext board, the Shenzhen Stock Exchange's board for growth enterprises.

BYD said the spin-off will not result in any changes in BYD's equity structure. Besides, BYD will still be the controlling shareholder of BYD Semiconductor.

Upon completion of the spin-off, BYD Semiconductor will continue working on the R&D, production and sale of power semiconductors, intelligent control units, intelligent sensors, and photoelectric semiconductors. While focusing on automotive-grade semiconductors, BYD Semiconductor will also develop semiconductor businesses for the spheres like industry, home appliance, new energy, and consumer electronics in the future.

According to BYD’s announcement, BYD Semiconductor, formerly named Shenzhen BYD Microelectronics Co., Ltd. was founded in October 2004, and is 72.3% directly held by BYD. Wang Chuanfu, BYD's chairman, is the actual controller of BYD Semiconductor.

BYD Semiconductor’s full-year net profit attributable to shareholders of parent companies reached 33 million yuan ($5.125 million), 30 million yuan ($4.659 million) and 32 million yuan ($4.97 million) in 2018, 2019 and 2020 respectively.

BYD said the spin-off will help BYD Semiconductor improve capital strength and enhance risk-prevention capacity so as to lift the company's comprehensive competitiveness and profitability.

BYD announced on April 14, 2020 it had completed the internal restructuring of its wholly-owned subsidiary Shenzhen BYD Microelectronics Co., Ltd., which would seek to go public at an appropriate moment. In addition, the name of BYD Microelectronics changed to BYD Semiconductor in January 2020, according to the corporate data platform Tianyancha.